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 STATEMENT  OF  COMMISSIONER  MICHAEL  J.  COPPS,  CONCURRING 
 RE:  Auction  of  Advanced  Wireless  Services  Licenses  Scheduled  for  June  29,  2006;  Notice  and  Filing  Requirements,  Minimum  Opening  Bids,  Upfront  Payments  and 
 Other  Procedures  for  Auction  No.  66  (Public  Notice,  AU  Docket  No.  06-  30). 
 Today  we  announce  the  rules  of  the  road  for  this  summer’s  AWS  auction.  In  doing  so,  we  lay  the  groundwork  for  finally  realizing  the  full  potential  of  this  90 
 megahertz  of  spectrum.  Innovative  wireless  companies  can  use  this  valuable  resource  to  bring  an  exciting  range  of  new  services  to  the  nation’s  consumers.  Of  particular 
 importance,  by  offering  both  geographically  large  and  small  auction  areas,  the  auction  will  provide  opportunities  for  small  as  well  as  large  wireless  companies.  And  let’s  not 
 forget  this:  taxpayers  are  expected  to  receive,  according  to  analysts,  anywhere  from  $8  to  $15  billion  in  auction  revenue. 


 With  so  much  at  stake,  the  proposal  to  replace  our  transparent  bidding  procedures  at  this  late  date  with  an  anonymous  bidding  approach  gives  me  some  pause.  I  commend 
 the  staff  for  considering  ways  to  ensure  the  integrity  of  the  auction  by  trying  to  protect  against  possible  collusive  and  retaliatory  behavior.  That  is  essential.  I  also  appreciate  the 
 efforts  of  the  Chairman  to  develop  an  approach  –  based  on  the  record  –  that  strikes  a  balance  on  information  disclosure.  I  nevertheless  remain  concerned  that  our  decision 
 could  lead  to  unintended  consequences  –  as  is  often  the  case  with  significant  changes  arrived  at  quickly.  A  worst  case  scenario,  of  course,  would  involve  fewer  bidders 
 participating  in  the  auction  and  less  revenue  raised  in  the  process. 
 The  schedule  for  the  AWS  auction  needs  to  stay  on  track,  and  I  concur  today  to  ensure  that  it  does.  I  did  not  participate  in  the  formulation  of  the  original  staff  proposal 
 on  anonymous  bidding,  and  have  not,  frankly,  had  enough  time  to  determine  with  confidence  that  we  can  successfully  change  so  many  long-  standing  auction  procedures.  I 
 am  hopeful,  however,  that  the  approach  we  adopt  today  will  protect  the  integrity  of  the  auction,  preserve  the  ability  of  companies  of  all  sizes  to  participate,  and  promote 
 competitive  and  consumer-  friendly  utilization  of  this  spectrum. 
 On  a  separate  but  related  note,  when  we  revised  the  AWS  band  plan  and  service  rules  last  August,  I  expressed  concern  about  misuse  of  our  Designated  Entity  program  – 
 calling  for  action  to  fix  it  in  advance  of  the  AWS  auction.  As  I  explained  then,  I  believe  the  DE  program  plays  a  critical  role  in  ensuring  that  smaller  carriers  have  a  fighting 
 chance  to  obtain  spectrum  resources.  But  at  the  same  time,  we  have  a  solemn  obligation  to  take  a  strong  stand  against  abuses  of  the  program.  We  must  not  allow  deep-  pocketed 
 companies  or  individuals  to  erode  the  integrity  of  our  auctions  by  masquerading  as  small  carriers.  It  is  critically  important  that  we  act  to  ensure  reforms  that  protect  against  fraud 
 in  time  for  the  upcoming  AWS  auction. 
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